WALMART INC (1WMT.MI) Stock Fundamental Analysis
BIT:1WMT - Euronext Milan - US9311421039 - Common Stock - Currency: EUR
Overall 1WMT gets a fundamental rating of 6 out of 10. We evaluated 1WMT against 26 industry peers in the Consumer Staples Distribution & Retail industry. 1WMT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1WMT is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make 1WMT a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
1WMT had positive earnings in the past year.
1WMT had a positive operating cash flow in the past year.
In the past 5 years 1WMT has always been profitable.
Each year in the past 5 years 1WMT had a positive operating cash flow.
1.2 Ratios
1WMT has a Return On Assets of 7.45%. This is amongst the best in the industry. 1WMT outperforms 82.14% of its industry peers.
1WMT's Return On Equity of 21.36% is fine compared to the rest of the industry. 1WMT outperforms 75.00% of its industry peers.
With an excellent Return On Invested Capital value of 13.25%, 1WMT belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1WMT is above the industry average of 9.00%.
The last Return On Invested Capital (13.25%) for 1WMT is above the 3 year average (12.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 21.36% | ||
| ROIC | 13.25% |
ROA(3y)6.13%
ROA(5y)5.87%
ROE(3y)18.36%
ROE(5y)17.64%
ROIC(3y)12.73%
ROIC(5y)12.9%
1.3 Margins
1WMT has a better Profit Margin (2.85%) than 78.57% of its industry peers.
In the last couple of years the Profit Margin of 1WMT has remained more or less at the same level.
With an excellent Operating Margin value of 4.31%, 1WMT belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
In the last couple of years the Operating Margin of 1WMT has remained more or less at the same level.
The Gross Margin of 1WMT (24.85%) is comparable to the rest of the industry.
1WMT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.31% | ||
| PM (TTM) | 2.85% | ||
| GM | 24.85% |
OM growth 3Y-4.61%
OM growth 5Y1.02%
PM growth 3Y6.13%
PM growth 5Y0.1%
GM growth 3Y-0.33%
GM growth 5Y0.13%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1WMT is still creating some value.
Compared to 1 year ago, 1WMT has less shares outstanding
1WMT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1WMT has an improved debt to assets ratio.
2.2 Solvency
1WMT has an Altman-Z score of 6.05. This indicates that 1WMT is financially healthy and has little risk of bankruptcy at the moment.
1WMT has a Altman-Z score of 6.05. This is amongst the best in the industry. 1WMT outperforms 92.86% of its industry peers.
The Debt to FCF ratio of 1WMT is 3.62, which is a good value as it means it would take 1WMT, 3.62 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.62, 1WMT is doing good in the industry, outperforming 78.57% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that 1WMT is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.47, 1WMT is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.62 | ||
| Altman-Z | 6.05 |
ROIC/WACC1.53
WACC8.65%
2.3 Liquidity
A Current Ratio of 0.82 indicates that 1WMT may have some problems paying its short term obligations.
The Current ratio of 1WMT (0.82) is worse than 67.86% of its industry peers.
A Quick Ratio of 0.24 indicates that 1WMT may have some problems paying its short term obligations.
1WMT's Quick ratio of 0.24 is on the low side compared to the rest of the industry. 1WMT is outperformed by 96.43% of its industry peers.
The current and quick ratio evaluation for 1WMT is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.40% over the past year.
The Earnings Per Share has been growing by 8.80% on average over the past years. This is quite good.
1WMT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.07%.
The Revenue has been growing slightly by 5.38% on average over the past years.
EPS 1Y (TTM)13.4%
EPS 3Y5.3%
EPS 5Y8.8%
EPS Q2Q%10%
Revenue 1Y (TTM)5.07%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%4.13%
3.2 Future
Based on estimates for the next years, 1WMT will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.64% on average per year.
The Revenue is expected to grow by 3.98% on average over the next years.
EPS Next Y10.94%
EPS Next 2Y11.53%
EPS Next 3Y11.58%
EPS Next 5Y11.64%
Revenue Next Year3.63%
Revenue Next 2Y4.06%
Revenue Next 3Y4.3%
Revenue Next 5Y3.98%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 36.74, 1WMT can be considered very expensive at the moment.
64.29% of the companies in the same industry are cheaper than 1WMT, based on the Price/Earnings ratio.
1WMT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 29.35.
A Price/Forward Earnings ratio of 33.09 indicates a quite expensive valuation of 1WMT.
78.57% of the companies in the same industry are cheaper than 1WMT, based on the Price/Forward Earnings ratio.
1WMT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.74 | ||
| Fwd PE | 33.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1WMT is valued a bit more expensive than 67.86% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1WMT indicates a slightly more expensive valuation: 1WMT is more expensive than 67.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.46 | ||
| EV/EBITDA | 18.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1WMT may justify a higher PE ratio.
PEG (NY)3.36
PEG (5Y)4.18
EPS Next 2Y11.53%
EPS Next 3Y11.58%
5. Dividend
5.1 Amount
1WMT has a yearly dividend return of 0.99%, which is pretty low.
1WMT's Dividend Yield is comparable with the industry average which is at 3.95.
Compared to an average S&P500 Dividend Yield of 2.33, 1WMT's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
5.2 History
The dividend of 1WMT has a limited annual growth rate of 3.32%.
Dividend Growth(5Y)3.32%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
34.41% of the earnings are spent on dividend by 1WMT. This is a low number and sustainable payout ratio.
1WMT's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP34.41%
EPS Next 2Y11.53%
EPS Next 3Y11.58%
BIT:1WMT (3/7/2025, 7:00:00 PM)
84.86
-3.86 (-4.35%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners35.65%
Inst Owner ChangeN/A
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap681.71B
Analysts83.83
Price Target106.36 (25.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.99% |
Yearly Dividend0.77
Dividend Growth(5Y)3.32%
DP34.41%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.68%
Min EPS beat(2)1.55%
Max EPS beat(2)7.81%
EPS beat(4)4
Avg EPS beat(4)6.4%
Min EPS beat(4)1.55%
Max EPS beat(4)13.47%
EPS beat(8)7
Avg EPS beat(8)6.31%
EPS beat(12)10
Avg EPS beat(12)5.82%
EPS beat(16)14
Avg EPS beat(16)7.71%
Revenue beat(2)1
Avg Revenue beat(2)-0.29%
Min Revenue beat(2)-0.69%
Max Revenue beat(2)0.11%
Revenue beat(4)2
Avg Revenue beat(4)-0.21%
Min Revenue beat(4)-0.69%
Max Revenue beat(4)0.26%
Revenue beat(8)4
Avg Revenue beat(8)0.08%
Revenue beat(12)8
Avg Revenue beat(12)0.49%
Revenue beat(16)11
Avg Revenue beat(16)0.87%
PT rev (1m)11.83%
PT rev (3m)16.3%
EPS NQ rev (1m)-8.81%
EPS NQ rev (3m)-8.63%
EPS NY rev (1m)0.26%
EPS NY rev (3m)0.04%
Revenue NQ rev (1m)-0.9%
Revenue NQ rev (3m)-0.71%
Revenue NY rev (1m)-0.43%
Revenue NY rev (3m)-0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.74 | ||
| Fwd PE | 33.09 | ||
| P/S | 1.09 | ||
| P/FCF | 58.46 | ||
| P/OCF | 20.31 | ||
| P/B | 8.13 | ||
| P/tB | 11.9 | ||
| EV/EBITDA | 18.28 |
EPS(TTM)2.31
EY2.72%
EPS(NY)2.56
Fwd EY3.02%
FCF(TTM)1.45
FCFY1.71%
OCF(TTM)4.18
OCFY4.92%
SpS78.08
BVpS10.44
TBVpS7.13
PEG (NY)3.36
PEG (5Y)4.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.45% | ||
| ROE | 21.36% | ||
| ROCE | 17.87% | ||
| ROIC | 13.25% | ||
| ROICexc | 14.01% | ||
| ROICexgc | 17.12% | ||
| OM | 4.31% | ||
| PM (TTM) | 2.85% | ||
| GM | 24.85% | ||
| FCFM | 1.86% |
ROA(3y)6.13%
ROA(5y)5.87%
ROE(3y)18.36%
ROE(5y)17.64%
ROIC(3y)12.73%
ROIC(5y)12.9%
ROICexc(3y)13.5%
ROICexc(5y)13.96%
ROICexgc(3y)16.63%
ROICexgc(5y)17.34%
ROCE(3y)17%
ROCE(5y)17.18%
ROICexcg growth 3Y-3.11%
ROICexcg growth 5Y4.63%
ROICexc growth 3Y-2.28%
ROICexc growth 5Y5.29%
OM growth 3Y-4.61%
OM growth 5Y1.02%
PM growth 3Y6.13%
PM growth 5Y0.1%
GM growth 3Y-0.33%
GM growth 5Y0.13%
F-Score8
Asset Turnover2.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.62 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 183.33% | ||
| Cap/Sales | 3.49% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 86.11% | ||
| Profit Quality | 65.14% | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.24 | ||
| Altman-Z | 6.05 |
F-Score8
WACC8.65%
ROIC/WACC1.53
Cap/Depr(3y)170.4%
Cap/Depr(5y)145.24%
Cap/Sales(3y)3.14%
Cap/Sales(5y)2.71%
Profit Quality(3y)88.41%
Profit Quality(5y)110.16%
High Growth Momentum
Growth
EPS 1Y (TTM)13.4%
EPS 3Y5.3%
EPS 5Y8.8%
EPS Q2Q%10%
EPS Next Y10.94%
EPS Next 2Y11.53%
EPS Next 3Y11.58%
EPS Next 5Y11.64%
Revenue 1Y (TTM)5.07%
Revenue growth 3Y5.94%
Revenue growth 5Y5.38%
Sales Q2Q%4.13%
Revenue Next Year3.63%
Revenue Next 2Y4.06%
Revenue Next 3Y4.3%
Revenue Next 5Y3.98%
EBIT growth 1Y8.65%
EBIT growth 3Y1.05%
EBIT growth 5Y6.45%
EBIT Next Year56.42%
EBIT Next 3Y21.58%
EBIT Next 5Y14.59%
FCF growth 1Y-16.27%
FCF growth 3Y-0.68%
FCF growth 5Y-2.74%
OCF growth 1Y2.01%
OCF growth 3Y11.87%
OCF growth 5Y7.61%